CURRENT AFFAIRS

Detailed explanation-1: -HDFC Bank is the first Bank to offer, Digital Loan Against Mutual Funds (LAMF). You can pledge mutual fund investments online and get an overdraft limit set in your account. Enjoy the benefits of instant availability of funds, retention of mutual fund returns without liquidation, and more.

Detailed explanation-2: -Loan against securities is a loan where you pledge your shares, mutual funds or life insurance policies as collateral to the bank against your loan amount.

Detailed explanation-3: -Through a Digital Loan against Mutual Fund, you offer your MF units as collateral for the loan. The bank holds the Mutual Fund units as a security till you repay the loan amount. Your Mutual Funds will continue to earn returns, but you cannot sell them while you have pledged them to the bank.

Detailed explanation-4: -Debentures, shares, bonds or mutual funds are offered as collateral. The tenure of the loan against security is one year, but it can be easily renewed. The rate of interest usually ranges from 12 – 15%.

Detailed explanation-5: -Loan Against Securities | Loan Amount | Bank Loan | Loan Bank | Security Bank Loans | ICICI Bank.